India Retail Sales Rise 10% in March, Ending FY2026 on a Stable Note
India’s retail sector recorded 10% year-on-year growth in March 2026, according to Round 69 of the Retailers Association of India’s (RAI) monthly Business Survey, closing FY2026 on a steady and moderately strong note.
The latest survey indicates that retail growth has remained consistently between 9% and 10% over the past six months, reflecting stable consumer demand despite ongoing economic and cost pressures.
Regional Markets Deliver Broad-Based Growth
Growth was recorded across all major regions of the country. Western and Northern India led the performance with 11% growth each, followed by Southern India at 10% and Eastern India at 9%.
The widespread growth suggests resilient consumer spending patterns across urban and regional markets.
Food, Apparel and QSR Segments Lead Demand
Among retail categories, food and grocery emerged as the strongest performer with 14% growth, followed by apparel at 13%, jewellery at 12%, and quick-service restaurants (QSRs) at 11%.
The QSR segment maintained strong momentum throughout FY2026, reflecting continued demand for convenience and dining-out experiences.
In contrast, consumer durables remained under pressure, registering just 1% like-for-like growth as shoppers continued to postpone major purchases amid economic uncertainty.
Retailers Face Margin Pressures
While revenue growth remained healthy, retailers continue to face rising operational costs. Increasing energy expenses, logistics costs and real estate rentals are putting pressure on profit margins across categories.
Industry participants also reported a moderation in physical store footfalls. However, conversion rates have improved as consumers are becoming more focused in their purchasing decisions.
Retailers are responding by adopting more localised merchandise assortments, sharper pricing strategies and stronger value propositions to meet evolving consumer expectations.
FY2027 Will Reward Precision and Value
Commenting on the findings, Kumar Rajagopalan, Executive Director and CEO of the Retailers Association of India, said March concluded FY2026 on a stable and moderately strong footing.
He noted that food, apparel, QSR and jewellery segments drove growth, while consumer durables continued to lag due to caution around big-ticket spending.
Rajagopalan added that global uncertainty and rising input costs across energy, logistics and real estate are creating pricing pressures for retailers. He emphasised that today’s consumers are more purposeful than they were two years ago, making product relevance and value positioning increasingly important.
According to RAI, FY2027 is expected to favour retailers that focus on precision, customer relevance and operational efficiency rather than expansion alone.
